Fed Hike Unanimous, More to Come

• The Fed raised rates 25bps to 3.75–4.00% in a unanimous decision, as expected. The statement said inflation remains elevated and the move supports a “timelier” return to 2%.
• Treasury yields rose sharply after the decision, with the 2-year up 7–8bps and the 10-year up 4–5bps. The dot plot showed 12 of 18 members expect another hike this year, keeping further tightening firmly in play.
• The Fed also upgraded its 2026 outlook, lifting GDP growth to 2.3%, core PCE inflation to 3.4% and lowering unemployment to 4.1%. The mix points to a stronger economy but slower inflation progress.
• Brent crude fell around 3% to the US$105/bbl area as Saudi Arabia moved to restore part of its East-West pipeline and increased prompt crude sales to Asia, easing some near-term supply pressure.
• Ahead: RBA Governor Bullock appears before the House Economics Committee on Friday, while the Westpac Leading Index is due locally. Offshore, the BoE is expected to hold at 3.75%.